International trade terms
Trade terms are abbreviated terms gradually formed in international trade practices, which express the seller’s and the buyer’s transaction costs, responsibility and risk under different conditions of delivery.
The role of trade terms
---Risks of loss shifts from the seller to the buyer
---Costs of freight and insurance
Simplifying the process of negotiation of a contract, saving time and costs
EXW (named place) EX WORKS
1、means that the seller delivers when it places the goods at the disposal of the buyer at the seller’s premises or at another named place (i.e., works, factory, warehouse, etc.).
2、The seller does not need to load the goods on any collecting vehicle or bear the risk of loading, nor does it need to clear the goods for export.
3、suitable for any modes of transportation；
4、minimum responsibility for the seller。
FCA (named place) Free Carrier
means that the seller delivers the goods to the carrier or another person nominated by the buyer at the seller’s premises or another named place.
1、If the parties intend to deliver the goods at the seller’s premises, the risk will be transferred after the goods have been loaded on the means of transport provided by the buyer.
2、If the parties intend the goods to be delivered at another place, the risk will be transferred when the goods are placed at the disposal of the carrier or another person nominated by the buyer on the seller’s means of transport ready for unloading.
3 Contract of carriage：buyer’s liability
4 customs clearance: import- buyer,
FOB (named port) Free on Board 船上交货
means that the seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered.
1、waterway，but not for containers
2、contract of carriage：buyer should hire qualified carrier and ship
3、passing risk: on board （crossing ship’s rail）...